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Italian regulator fines Amazon $1.28 billion for abusing its market dominance:
Italy's antitrust authority (AGCM) has fined Amazon €1.13 billion ($1.28 billion) for "abuse of dominant position," the second penalty it has imposed on Amazon over the last month. Amazon holds a position of "absolute dominance" in the Italian brokerage services market, "which has allowed it to promote its own logistics service, called Fulfillment by Amazon (FBA)," the authority wrote in a (Google translated) press release.
According to the AGCM, companies must use Amazon's FBA service if they want access to key benefits like the Prime label, which in turn allows them to participate in Black Friday sales and other key events. "Amazon has thus prevented third-party sellers from associating the Prime label with offers not managed with FBA," it said.
The authority said access to those functions are "crucial" for seller success. It also noted that third-party sellers using FBA are not subject to the same stringent performance requirements as non-FBA sellers. As such, they're less likely to be suspended from the platform if they fail to meet certain goals. Finally, it noted that sellers using Amazon's logistics services are discouraged from offering their products on other online platforms, at least to the same extent they do on Amazon.
[...] In a statement to Engadget, an Amazon spokesperson said the company "strongly disagreed" with the decision and will appeal. It also noted that non-FBA sellers can use its Seller Fulfilled Prime (SFP) service, which gives them access to Prime benefits without having to use Amazon's logistics services.
We strongly disagree with the decision of the Italian Competition Authority (ICA) and we will appeal. The proposed fine and remedies are unjustified and disproportionate. More than half of all annual sales on Amazon in Italy come from SMBs, and their success is at the heart of our business model. Small and medium-sized businesses have multiple channels to sell their products both online and offline: Amazon is just one of those options. We constantly invest to support the growth of the 18,000 Italian SMBs that sell on Amazon, and we provide multiple tools to our sellers, including those who manage shipments themselves.
Previously:
Italy Fines Amazon, Apple $230M (€203M) Over Reseller Collusion
(Score: 1, Interesting) by Anonymous Coward on Friday December 10 2021, @12:31PM (1 child)
I have mixed feelings on Amazon. I'd order from someone else but every time I do it simply takes 2 to 3 times longer to receive a product, communication is poorer, return policies are poorer, etc.
I'm fully cognizant of the problems that a world wide Monopoly will bring, but Amazon's competitors aren't even in the same ballpark when it comes to performance.
(Score: 1, Interesting) by Anonymous Coward on Friday December 10 2021, @05:27PM
I think the relevant questions should be is Amazon good for the consumer.
The focus should not be on businesses. It should be on the consumer. Economies exist to serve the consumer not the producers. So that consumers can have the goods and services they demand.
Regulators trying to make this about what's in the best interests of businesses is not good. That's not why economies exist.